Practice Management

The Tax Code giveth and the Tax Code taketh away. The depreciation and expensing provisions in the Tax Code allow taxpayers to recover the cost of property through an annual allowance. As a result, many businesses have taken advantage of the opportunity to write off expenses of equipment and other tangible property by making purchases toward the end of the year, driven as much by the tax advantage it gives them as by the actual need for new equipment. But many of these business owners forget that when they sell an asset, the IRS can take their depreciation allowance back, often at the highest possible tax rate. Taxpayers use depreciation to write down the cost of assets, both tangible assets like capital equipment and real property, and intangible assets such as patent costs and goodwill. But if those assets are sold at a profit, the IRS can recapture the full amount that was depreciated.

The Treasury Department and the Internal Revenue Service have ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.

The American Institute of CPAs has released guidelines to help privately held businesses determine which accounting framework, including the Financial Reporting Framework for Small- and Medium-Sized Entities, best meets their financial reporting needs.

NetSuite Inc. is considering establishing a formal BPO program for CPA firms as its Accountants Program has reached 1,000 members worldwide.

The Tax Policy Center, has released new estimates projecting that the share of Americans paying no federal income tax will drop from fully half in 2008 and 2009 to just 43 percent this year and will continue to fall to just a third in 2024.

Amazon.com has enlisted former Solicitor General Ted Olson to file a petition with the U.S. Supreme Court to stop New York State from requiring Amazon customers to pay sales taxes on their purchases.

Boomer Consulting, Inc. announced Thursday the recipients of its inaugural Bridging the Gap Awards, recognizing firms and individuals in the accounting industry that excel in aligning technology, firm management and talent development.

The U.S. Court of Appeals for the Seventh Circuit in Chicago has affirmed the Tax Court, upholding the disallowance by the IRS of losses claimed by investors in a DAD (distressed asset/debt) tax shelter.

Switzerland is paving the way for its banks to settle a dispute with the U.S. over tax evasion, approving a plan after years of diplomatic wrangling.

As the number of available cloud storage offerings continues to expand, Box and Dropbox consistently rank among the most popular, yet which is best for your accounting firm?